--------------------------------------------------------------------------------

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark one)

/X/      QUARTERLY  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended SEPTEMBER 30, 1998

                                       OR

/ /      TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from ________to________

                           COMMISSION FILE NO. 0-21324

                             TRINITECH SYSTEMS, INC.
             (Exact name of registrant as specified in its charter)

                NEW YORK                                06-1344888
         (State of incorporation)        (I.R.S. Employer identification number)

     333 LUDLOW STREET, STAMFORD, CONNECTICUT           06902
     (Address of principal executive offices)        (Zip Code)

         Registrant's telephone number, including area code: (203) 425-8000

                                 --------------

            Indicate  by check mark  whether  the  registrant  (1) has filed all
reports  required to be filed by Section 13 or 15(d) of the Securities  Exchange
Act of 1934 during the preceding 12 months (or for such shorter  period that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/ No / /


8,788,530  shares of Common Stock were issued and  outstanding as of October 30,
1998.
<PAGE>
Trinitech Systems, Inc.

  FORM 10-Q
         For the quarterly period ended September 30, 1998


CONTENTS                                                                PAGE


  PART I.    FINANCIAL INFORMATION

  Item 1.    Financial Statements

         Condensed consolidated balance sheets at September 30, 1998
         (unaudited) and December 31, 1997                                  3

         Condensed consolidated statements of operations (unaudited)
         for the three months and nine months ended September 30, 1998
         and 1997                                                           4

         Condensed consolidated statements of cash flows (unaudited)
         for the months ended September 30, 1998  and 1997                  5

         Notes to condensed consolidated financial statements (unaudited)   6

Item 2.      Management's Discussion and Analysis of Financial
             Condition and Results of Operations                            9

PART II.    OTHER INFORMATION                                              16

                                       2
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY

                      CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>

                                                                                 September 30,       December 31,
ASSETS                                                                              1998                1997
                                                                                 -------------       ------------
                                                                                 (Unaudited)             (a)
<S>                                                                              <C>                 <C>
CURRENT ASSETS:
 Cash and cash equivalents                                                       $ 1,402,720         $ 2,141,307
 Accounts receivable - less allowance of $94,000 and $144,000                      2,454,637           1,859,301
 Inventories - less allowance of  $82,000                                          1,354,409           1,208,373
 Prepaid expenses and other current assets                                           266,375             102,500
 Receivable from officers                                                            102,597              91,597
                                                                                 -----------         -----------
              Total Current Assets                                                 5,580,738           5,403,078

EQUIPMENT - net of accumulated depreciation of $1,210,299 and $714,759             2,202,633           1,361,707

OTHER ASSETS - net of accumulated amortization of $1,384,974 and
$1,040,952                                                                         1,014,561             782,478
                                                                                 -----------         -----------
              TOTAL                                                              $ 8,797,932         $ 7,547,263
                                                                                 ===========         ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
 Accounts payable                                                                $   917,107         $   927,672
 Accrued expenses                                                                    419,426             389,174
 Current portion of term loans payable                                                     -              47,709
 Advance billings                                                                  1,150,946             171,414
 Payroll and other taxes payable                                                     141,189              63,706
                                                                                 -----------         -----------
              Total Current Liabilities                                            2,628,668           1,599,675

CREDIT LINE PAYABLE                                                                1,500,000                   -

TERM LOANS PAYABLE                                                                         -              45,855
                                                                                 -----------         -----------
              Total Liabilities                                                    4,128,668           1,645,530
                                                                                 -----------         -----------
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY:
  10% Convertible preferred stock - par value $1.00; 1,000,000 shares authorized;
    -0- issued and outstanding                                                             -                   -
  Common stock - par value $.001; 15,000,000 authorized 8,788,530 and
    8,524,530 shares issued and outstanding                                            8,789               8,525
  Additional paid-in capital                                                      11,309,812          10,419,763

  Accumulated deficit                                                             (6,202,159)         (4,096,555)
  Due from officers                                                                 (447,178)           (430,000)
                                                                                 -----------         -----------
              Total Stockholders' Equity                                           4,669,264           5,901,733

              TOTAL                                                              $ 8,797,932         $ 7,547,263
                                                                                 ===========         ===========
</TABLE>

 (a) The balance  sheet at December  31, 1997 has been  derived from the audited
financial statements at that date.

See accompanying notes.

                                       3
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

TRINITECH SYSTEMS, INC.
--------------------------------------------------------------------------------

STATEMENTS OF OPERATIONS (Unaudited)
------------------------------------
<TABLE>
<CAPTION>

                                                        -- Three Months Ended --                    -- Nine Months Ended --
                                                 September 30,        September 30,            September 30,        September 30,
                                                      1998                 1997                    1998                 1997
                                              ------------------   -----------------       --------------------    -----------------

<S>                                               <C>                  <C>                     <C>                       <C>
REVENUES:
Recurring contracts                                $914,296             $336,724              $2,378,661                  $914,621
Sales                                               528,998              472,578               1,666,456                 2,844,803
                                              -------------        -------------            ------------            --------------
     Total Revenues                               1,443,294              809,302               4,045,117                 3,759,424

COST OF RECURRING CONTRACTS AND SALES               653,361              485,105               1,721,011                 1,726,300
                                              -------------        -------------            ------------            --------------

GROSS PROFIT                                        789,933              324,197               2,324,106                 2,033,124
                                              -------------        -------------            ------------            --------------

EXPENSES:
Selling, general and administrative               1,241,607            1,238,619               4,201,853                 3,466,288
Depreciation                                        130,199               49,795                 298,831                   129,960
Amortization                                          4,596               10,213                  13,786                    28,634
                                              -------------        -------------            ------------            --------------
     Total Expenses                               1,376,402            1,301,671               4,514,470                 3,624,882
                                              -------------        -------------            ------------            --------------

LOSS FROM OPERATIONS                               (586,469)            (977,474)             (2,190,364)               (1,591,758)

OTHER (EXPENSE) INCOME:
Interest expense                                    (11,777)              (3,044)                (27,373)                  (10,410)
Other income                                         18,642               41,240                 112,133                   117,756
                                              -------------        -------------            ------------            --------------

NET LOSS                                          ($579,604)           ($936,234)            ($2,105,604)              ($1,484,412)
                                              =============        =============            ============            ==============

 NET LOSS PER COMMON SHARE                            $(.07)             $( 0.11)                 $(0.24)                  $( 0.19)
                                              =============        =============            ============            ==============

AVERAGE COMMON SHARES
        OUTSTANDING                               8,771,530            8,218,530               8,682,780                 7,998,030
                                              =============        =============            ============            ==============
</TABLE>

See accompanying notes.

                                       4
<PAGE>
                     TRINITECH SYSTEMS, INC. AND SUBSIDIARY

           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

<TABLE>
<CAPTION>

                                                                         Nine                  Nine
                                                                     Months Ended          Months Ended
                                                                     September 30,         September 30,
                                                                          1998                1997
                                                                     ------------           -----------

<S>                                                                  <C>                    <C>        
NET CASH USED IN OPERATING ACTIVITIES                                $(1,081,812)           $ (768,582)

INVESTING ACTIVITIES:
  Payments for equipment, net of retirements                          (1,377,419)             (537,918)
  Payments for other assets                                             (576,105)             (256,085)
                                                                     -----------            ----------
              Net cash used in investing activities                   (1,953,524)             (794,582)
                                                                     -----------            ----------

FINANCING ACTIVITIES:
  Proceeds from line of credit                                         2,000,000                     -
  Issuance of common stock                                               890,313             3,725,938
  Repayment of borrowings                                               (593,564)             (695,665)
                                                                     -----------            ----------
              Net cash provided by financing activities                2,296,749             3,030,273
                                                                     -----------            ----------

(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS                        (738,587)            1,467,330

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                         2,141,307             1,198,730
                                                                     -----------            ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD                             $ 1,402,720            $2,666,060
                                                                     ===========            ==========
</TABLE>

See accompanying notes.

                                       5
<PAGE>
TRINITECH SYSTEMS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited


1.          BASIS OF PRESENTATION

            The  accompanying   unaudited   condensed   consolidated   financial
            statements have been prepared in accordance with generally  accepted
            accounting principles for interim financial information and with the
            instructions  to Form  10-QSB  and ITEM 310 (b) of  Regulation  S-B.
            Accordingly,  they  do  not  include  all  of  the  information  and
            footnotes required by generally accepted  accounting  principles for
            complete  financial  statements.  In the opinion of management,  all
            adjustments  considered  necessary for a fair presentation have been
            included.  All such  adjustments are of a normal  recurring  nature.
            Operating results for the nine-month period ended September 30, 1998
            are not  necessarily  indicative of the results that may be expected
            for the year ending  December  31,  1998.  For further  information,
            refer to the consolidated financial statements and footnotes thereto
            included in the Company's  annual report on Form 10-KSB for the year
            ended December 31, 1997.


2.          INVENTORIES

            Inventories are stated at the lower of cost (first-in, first-out) or
            market. Inventories consisted of the following:

<TABLE>
<CAPTION>

                                                    September 30,       December 31,
                                                         1998               1997
                                                    -------------       ------------

<S>                                                 <C>                 <C>       
                 Parts                              $   892,153         $  875,822
                 Finished goods                         544,256            414,551
                 Less allowance for obsolescence         82,000             82,000
                                                    -----------         ----------
                               Total                $ 1,354,409         $1,208,373
                                                    ===========         ==========
</TABLE>


                                       6

<PAGE>
3.   EQUIPMENT

     Equipment consists of the following:
<TABLE>
<CAPTION>

                                                       September 30,        December 31,
                                                           1998                 1997
                                                        ---------          -----------

<S>                                                     <C>                <C>
       Computer software                                $ 378,929          $   331,668
       Leasehold improvements                             101,508               81,957
       Furniture and equipment                          1,035,863              878,518
       Subscription and service bureau equipment        1,896,632              784,323
                                                        ---------          -----------
                     Subtotal                           3,412,932            2,076,466

       Less accumulated depreciation                    1,210,299              714,759
                                                        ---------          -----------
                     Total                             $2,202,633           $1,361,707
                                                        =========          ===========
</TABLE>

4.     DEBT

       On July 13, 1998,  the Company  entered into a three year $3 million line
of credit agreement (the "Agreement") with a financial institution with advances
on such  agreement  available  to the  Company  during the first 18 months.  The
Agreement  is  primarily  intended  to finance  existing  and  future  equipment
expenditures.  The  Agreement  bears  interest at either LIBOR plus 1.25% or the
Bank's Prime Rate and is  personally  secured by a Company  shareholder  and the
Company's president.  The rate used is at management's  discretion.  The Company
drew down an aggregate of $1,500,000 under the Agreement in the third quarter of
1998 ($1  million at the nine month  LIBOR rate plus 1.25% (7%) and  $500,000 at
the 30 day LIBOR  rate plus  1.25%  (6.78%)).  The  Agreement  requires  monthly
payments of interest only until January 30, 2000, at which time monthly  ratable
principal and interest payments are made until the Agreement matures.  Principal
drawdowns  under the Agreement can not be prepaid in the first eighteen  months.
In consideration for securing the Agreement,  the said shareholder and president
will receive 150,000 and 25,000 warrants respectively, to purchase the Company's
common stock at $6.375 per share,  which was the market  value of the  Company's
common stock on the date such warrants were issued.

       In association with obtaining the $3 million line of credit facility, the
Company  terminated its previous $500,000 line of credit agreement (revised from
$1 million  line of credit  agreement  in June 1998) and repaid all  outstanding
term loans.

5.     PER SHARE INFORMATION

       In 1997, the Financial  Accounting  Standards Board issued  Statement No.
128, "Earning Per Share".  Statement 128 replaced the calculation of primary and
fully  diluted  earnings  per share with basic and diluted  earnings  per share.
Unlike  primary  earnings  per share,  basic  earnings  per share  excludes  any
dilutive  effects of  options,  warrants  and  convertible  securities.  Diluted
earnings  per share is very similar to the  previously  reported  fully  diluted
earnings per share.  Diluted earning per share is not presented in either period
because the effect of the Company's


                                       7
<PAGE>

common stock equivalents  (employee stock options and warrants) is antidilutive.
All  earnings  per share  amounts for all periods  have been  restated,  and are
presented to conform to the Statement 128 requirements.

6.     IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

       In October 1997, the American  Institute of Certified Public  Accountants
issued  Statement  of  Position  97-2,  "Software  Revenue  Recognition,"  which
supercedes  SOP-91-1 and  clarifies  the  existing  guidance  regarding  revenue
recognition of certain computer software products.  The Company adopted SOP 97-2
in the first  quarter of 1998 and the effect is not  material  to the  Company's
operations or financial position taken as a whole.

       In September 1997, the Financial  Accounting  Standards board issued FASB
Statement No. 131,  "Disclosures  about  Segments of an  Enterprise  and Related
Information." Statement 131 requires that segment data be disclosed based on how
management makes decisions about allocating  resources to segments and measuring
their  performance.  While  the  Company  is  studying  the  application  of the
disclosure  provisions,  it does not expect this statement to materially  affect
its financial position or results of operations. This Statement is effective for
the year ended December 31, 1998.

7.    OTHER INCOME

       Included in other income for the nine months ended  September 30, 1998 is
approximately  $50,000  pertaining  to the payment of a liability  for which the
Company had established a full reserve.



                                       8

<PAGE>
ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

       The  management  discussion  and  analysis in this Form  10-QSB  contains
certain  forward-looking   statements  regarding  the  Company's  future  plans,
objectives and expected  performance.  Those statements are based on assumptions
that the Company  believes  are  reasonable,  but are subject to a wide range of
risks and  uncertainties,  and a number of  factors  could  cause the  Company's
actual results to differ  materially from those expressed in the forward looking
statements referred to above. These factors include, among others, the Company's
ability to further penetrate the financial  services market with a full range of
the Company's  products and the highly  competitive  market in which the Company
operates.

       The following  discussion and analysis should be read in conjunction with
the consolidated financial statements and notes thereto.  Historical results and
percentage relationships are not necessarily indicative of the operating results
for any future period.

       Trinitech Systems,  Inc. develops and markets advanced electronic trading
systems to brokerage firms,  international banks and global exchanges trading in
equities,  futures & options,  and currencies.  The Company's  NYFIX Network,  a
combined  FIX and  Exchange  Access  Network,  enables  users to  electronically
communicate  trade  data  among the  buy-side,  sell-side,  and  exchange  floor
environments.  The Company's goal is to become the leading provider of real-time
electronic  trade entry and  routing  systems to the global  financial  services
industry.  Being firm  believers  in the global  market  going  electronic,  the
company has maintained a consistent and focused commitment to the development of
electronic trading  technologies  during the pioneering phase of the market. The
Company is  headquartered in Stamford,  Connecticut and maintains  operations in
New York, Chicago, and London.

       The Company  commenced  its present  business  operations in January 1991
through the acquisition of a software license for its  Guided-Input(R)  Touchpad
system.  Since that time, the Company has transitioned from a hardware vendor to
a software  development  company  focusing  exclusively on applications  for the
financial  marketplace.  The Company is in process of transforming  its business
from that of traditional  capital equipment sales to that of licensing-based and
subscription-based  revenue for its software and systems. The Company provides a
complete line of workstation products for the financial trading desk environment
and its systems provide order  management and routing software for firms engaged
in  financial  trading.  The  Company  currently  offers  its  trading  products
(integrated  systems  including  hardware and  software)  together  with linkage
through its NYFIX data-center. The data-center is a communication infrastructure
enabling  the  Company  to  provide  its   customers   with  global   electronic
connectivity  for order  routing and allows  Trinitech to deploy and monitor its
systems and  services  from a single  location.  Customers  subscribe to various
products,  paying  a  monthly  fee per  terminal  for the  Company's  integrated
software  systems.  Most  contracts  provide the customer with a basic system or
infrastructure,  via the Company's NYFIX data-center and are entered into by the
customer with the intention to expand the level of services  subscribed to, once
the basic  system  and  infrastructure  are  operational.  Subscription  revenue
contracts are generally for an initial period of one year with one to three year

                                       9
<PAGE>
renewal periods. Initial annual revenues range from $15,000 to over $400,000 per
annum per  contract.  The Company  begins  recording  subscription  revenue once
installation is complete. Although subscription-based revenue has the short-term
negative impact of reduced revenues in the early stage, management believes that
the change will have a long-term positive impact on the future revenue growth of
the Company.  Management is of the opinion that this change has already resulted
in new orders and increased  market share that it otherwise  would not have had,
in  addition  to  leading  to  longer-term  and more  predictable  revenues  per
customer.  In addition to significant  logistical  improvements  in delivery and
support of its products, the Company expanded its business to offer the industry
a central  electronic  meeting place between the buy-side and  sell-side,  while
simultaneously  providing  a  single  point of  universal  access  to  different
exchange floor environments.

       Management has made a considerable effort with respect to an expansion of
its  operations,  development  of various  trading  systems  and  changes to its
business model to that of a  subscription-based  product  offering.  The Company
believes that this  expansion of personnel,  facilities,  product  portfolio and
subscription-based  model will better  position the Company and  facilitate  its
future growth. Management is of the opinion that the Company's transition from a
capital  sales  model to a  subscription  sales  model  will  not  only  lead to
additional orders on top of the original contract, but will create a longer term
and more stable revenue stream for the Company going forward. It is important to
note that this  transition  is causing  revenue to be  recognized  over a longer
period of time than the previous  capital  sales  model.  The Company is excited
about the subscription-based  model because as the Company continues to add more
customers,  the Company will collect  revenue from each customer as long as they
are utilizing the Company's  products or services.  In the previous  model,  the
Company  would only  receive  revenue one time for  products  or services  sold.
Management  believes  the new  business  model  will  strengthen  the  Company's
marketshare and its financial position going forward.

THREE MONTHS ENDED  SEPTEMBER 30, 1998 COMPARED TO THREE MONTHS ENDED  SEPTEMBER
30, 1997

REVENUES

       The increase in revenues for the three  months ended  September  30, 1998
over the comparable 1997 period was  principally  due to the Company's  changing
its strategy to electronic  order routing which it began executing in late 1997.
In addition to the conversion from capital sales to subscription sales, a number
of new  products  and  order  routing  services  under the  NYFIX  umbrella  are
contributing to the Company's  continued ramp up in new orders and corresponding
recurring revenues.

       Consistent with the Company's objectives, recurring revenue has generally
been increasing on a quarter-to-quarter  basis.  Recurring revenue is accounting
for a greater  share of the Company's  total  revenue.  Recurring  contracts are
comprised of subscription  revenue and service  revenue.  Recurring  contractual
revenue for the Company  increased  by  approximately  172% in the three  months
ended  September 30, 1998 (from $336,724 to $914,296)  over the comparable  1997
period.  During the three month period ended  September  30, 1998,  subscription
contracts  and service  contracts  were  approximately  64% and 36% of recurring
contractual revenue, respectively, as compared to 23%


                                       10
<PAGE>

and 77%,  respectively,  during the three-month period ended September 30, 1997.
The  increase  in  recurring  contractual  revenue  is  due  principally  to the
Company's strategy of offering its products and services on a subscription basis
rather than capital sales coupled with increased service agreements.

       Sales revenue is comprised of capital equipment sales and software sales.
Sales revenue for the Company increased by approximately 12% in the three months
ended  September  30, 1998 over the  comparable  1997 period  (from  $472,578 to
$528,998).  During the three month period  ended  September  30,  1998,  capital
equipment  sales and software  revenue were  approximately  56% and 44% of sales
revenues, respectively as compared to 67% and 33%, respectively during the three
month period ended September 30, 1997.) The increase in sales (capital equipment
and  software)  is  primarily  attributable  to  increased  orders in the United
States.  Foreign  operation  revenues  amounted to  approximately  $401,000  and
$324,000  for the  three-month  periods  ended  September  30,  1998  and  1997,
respectively.

       Revenue from export sales  approximated  $8,000 (less than 1% of revenue)
during  the  three-month   period  ended  September  30,  1998  as  compared  to
approximately  $87,000  (approximately  18% of  revenue)  during the  comparable
period in 1997.

COST OF RECURRING CONTRACTS AND SALES AND GROSS PROFIT

       The  Company's  cost of  recurring  contracts  and sales are  principally
comprised of labor,  materials,  overhead,  amortization of capitalized  product
enhancement   costs,   depreciation   of   subscription   based   equipment  and
communication  lines.  Gross  profit  as  a  percentage  of  total  revenue  was
approximately  55% and 40% during the  three-month  periods ended  September 30,
1998 and 1997, respectively. The increase in gross profit percentage experienced
by  the  Company  during  the  three-month   period  ended  September  30,  1998
principally   resulted   from  an  increase  in  the  amount  of  higher  margin
subscription  and service  contracts and software sales. The Company obtains its
materials  and supplies  from a variety of vendors in the U.S. and the Far East.
Included in cost of sales is amortization  expense for product enhancement costs
of  approximately  $124,000  and  $167,000  for the  three-month  periods  ended
September  30, 1998 and 1997,  respectively.  Also  included in cost of sales is
depreciation  expense for subscription based equipment of approximately  $88,000
and  $40,000  for the  three-month  period  ended  September  30, 1998 and 1997,
respectively.

SELLING, GENERAL AND ADMINISTRATIVE

       During the three months ended  September  30, 1998,  selling  general and
administrative expenses remained relatively flat (from $1,238,619 to $1,241,607)
when compared to the three months ended September 30, 1997. Both periods reflect
the continued  expansion of the development,  technical and finance teams in the
U.S.  and  the  continued  expansion  of the  development  team in  London.  The
expansion in development  efforts relates to the Company's plans of providing an
increased number of new additional  services.  These services relate to offering
subscription  and  transaction  based  order-routing,  via the  Company's  NYFIX
data-center,  to multiple exchange-floors and between "Buy-side" and "Sell-side"
institutions.  The Company's  recruitment  effort  continues to  strengthen  the
Company's  infrastructure  and  position  the  Company to respond to  increasing
market and revenue opportunities.  Included in selling, general & administrative
expenses is rent expense

                                       11

<PAGE>
for the  Company's  offsite  data  center and  equipment  in such data center of
approximately  $75,514 for the three-month  period ended September 30, 1998. The
Company,  during the past several years, has committed considerable resources to
developing a variety of "trader desk-top" and "exchange-floor"  trading systems.
Management  believes that the investment in development of the new  data-center,
and its services,  is designed to better  leverage the existing  products  while
providing additional sources of revenue. The Company has continued its marketing
programs in 1998 primarily focusing on public relations  activities,  production
of various product brochures,  and representation at technological  exhibitions.
Research  and  development  (new  explorative  research)  expenses for the three
months  ended  September  30,  1998 and 1997  were  approximately  $147,000  and
$72,000,  respectively (an increase of approximately  105%), and are included in
selling, general and administrative expenses.


DEPRECIATION

       Depreciation  expense increased by approximately 161% in the three months
ended  September  30,  1998 over the  comparable  1997 period  (from  $49,795 to
$130,199).  Such increases  principally reflect the continued  investment in the
Company's infrastructure in its state of the art data center on Wall Street.

OTHER (EXPENSE) INCOME

       Interest expense increased in the three-month  period ended September 30,
1998  principally  because of higher  balances  outstanding on the company's new
line of credit.

       Interest  income in the three  months ended  September  30, 1998 and 1997
approximated  $19,000  and  $41,000,  respectively.  Interest  income  decreased
principally  because of lower  average cash  balances  maintained by the Company
during the three months ended  September  30, 1998 versus the three months ended
September 30, 1997.


NET LOSS

       Net loss for the three  months  ended  September  30,  1998 was  $579,604
($0.07 per share) as compared  to a net loss of  $936,234  ($0.11 per share) for
the three months ended September 30, 1997. The decrease in net loss, principally
resulted  from an  increase in  recurring  revenue  from the  subscription-based
revenue  model which in the three  months  ended  September  30, 1997 was in the
beginning stage of  implementation,  and an increase in gross profit margin. See
"Revenues"and "Cost of Recurring Contracts and Sales and Gross Profit" above.


                                      -12-
<PAGE>
NINE MONTHS ENDED SEPTEMBER 30, 1998 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1997

REVENUES

       The  increase in revenues for the nine months  ended  September  30, 1998
over the comparable 1997 period was  principally  due to the Company's  changing
its strategy to electronic  order routing which it began executing in late 1997.
In addition to the conversion from capital sales to subscription sales, a number
of new  products  and  order  routing  services  under the  NYFIX  umbrella  are
contributing to the Company's  continued ramp up in new orders and corresponding
recurring revenues.

       Consistent with the Company's objectives, recurring revenue has generally
been increasing on a quarter-to-quarter  basis.  Recurring revenue is accounting
for a greater  share of the Company's  total  revenue.  Recurring  contracts are
comprised of subscription  revenue and service  revenue.  Recurring  contractual
revenue for the Company increased by approximately 160% in the nine months ended
September  30,  1998 (from  $914,621 to  $2,378,661)  over the  comparable  1997
period.  During the nine month period  ended  September  30, 1998,  subscription
contracts  and service  contracts  were  approximately  60% and 40% of recurring
contractual  revenue,  respectively,  as compared to 16% and 84%,  respectively,
during the nine-month period ended September 30, 1997. The increase in recurring
contractual revenue is due principally to the Company's strategy of offering its
products and services on a subscription  basis rather than capital sales coupled
with increased service agreements.

       Sales revenue is comprised of capital equipment sales and software sales.
Sales revenue for the Company  decreased by approximately 41% in the nine months
ended  September 30, 1998 over the  comparable  1997 period (from  $2,844,803 to
$1,666,456).  During the nine month period  ended  September  30, 1998,  capital
equipment  sales and software  revenue were  approximately  45% and 55% of sales
revenues,  respectively as compared to 61% and 39%, respectively during the nine
month period ended September 30, 1997.) The decrease in sales (capital equipment
and  software)  corresponds  to the increase in recurring  revenue as previously
mentioned.

       Revenue from export sales approximated $226,000 (less than 6% of revenue)
during  the  nine-month   period  ended   September  30,  1998  as  compared  to
approximately  $2,209,000 (78% of revenue) during the comparable period in 1997.
Foreign operation  revenues amounted to approximately  $1,523,000 and $1,238,000
for the nine-month periods ended September 30, 1998 and 1997, respectively.

COST OF RECURRING CONTRACTS AND SALES AND GROSS PROFIT

       The  Company's  cost of  recurring  contracts  and sales are  principally
comprised of labor,  materials,  overhead,  amortization of capitalized  product
enhancement costs and depreciation of subscription based equipment. Gross profit
as a  percentage  of total  revenue  was  approximately  57% and 54%  during the
nine-month period ended September 30, 1998 and 1997,  respectively.  The Company
obtains its materials and supplies from a variety of vendors in the U.S. and the
Far East. Included


                                       13

<PAGE>
in cost of  sales is  amortization  expense  for  product  enhancement  costs of
approximately  $330,000 and $241,000 for the nine month periods ended  September
30, 1998 and 1997, respectively.  Also included in cost of sales is depreciation
expense for subscription  based equipment of approximately  $205,000 and $40,000
for the nine-month period ended September 30, 1998 and 1997, respectively.


SELLING, GENERAL AND ADMINISTRATIVE

       During the nine months  ended  September  30, 1998,  selling  general and
administrative   expenses  increased   approximately  21%  (from  $3,466,288  to
$4,201,853)  when  compared to the nine months ended  September  30, 1997.  Such
increases  reflect the  continued  expansion of the  development,  technical and
finance teams in the U.S. and the continued expansion of the development team in
London.  The expansion in development  efforts relates to the Company's plans of
providing an increased number of new services. These services relate to offering
subscription  and  transaction  based  order-routing,  via the  Company's  NYFIX
data-center,  to multiple exchange-floors and between "Buy-side" and "Sell-side"
institutions.  As a result,  the Company  experienced  increases in salaries and
related  personnel  costs,  travel  expenses and various  office  expenses.  The
Company's   recruitment   effort   continues   to   strengthen   the   Company's
infrastructure  and  position  the Company to respond to  increasing  market and
revenue opportunities. Included in selling, general & administrative expenses is
rent expense for the  Company's  offsite data center and  equipment in such data
center of approximately  $227,000 for the nine-month  period ended September 30,
1998.  The Company,  during the past several years,  has committed  considerable
resources to  developing  a variety of "trader  desk-top"  and  "exchange-floor"
trading systems.  Management  believes that the investment in development of the
new data-center,  and its services, are designed to better leverage the existing
products  while  providing  additional  sources  of  revenue.  The  Company  has
continued its marketing  programs in 1998 primarily focusing on public relations
activities,  production of various  product  brochures,  and  representation  at
technological  exhibitions.  Research and development (new explorative research)
expenses  for  the  nine  months  ended   September   30,  1998  and  1997  were
approximately $490,000 and $213,000, respectively, (an increase of approximately
130%) and are included in selling, general and administrative expenses.

DEPRECIATION

       Depreciation  expense increased by approximately 130% in the three months
ended  September  30, 1998 over the  comparable  1997 period  (from  $129,960 to
$298,831).  Such increases  principally reflect the continued  investment in the
Company's infrastructure in its state of the art data center on Wall Street.

OTHER (EXPENSE) INCOME

       Interest expense  increased in the nine-month  period ended September 30,
1998  principally  because of higher  balances  outstanding on the company's new
line of credit.

       Other income  consists  principally  of a settlement of a fully  reserved
liability, interest earned on cash balances and sublease income earned. Included
in other income for the nine months ended  September  30, 1998 is  approximately
$50,000 pertaining to the payment of a liability for which

                                       14

<PAGE>

the Company had  established a full reserve.  Interest income in the nine months
ended   September  30,  1998  and  1997   approximated   $62,000  and  $104,800,
respectively.  Interest income  decreased  principally  because of lower average
cash balances  maintained by the Company during the nine months ended  September
30, 1998 versus the nine months ended September 30, 1997. The Company previously
leased a portion of its corporate  office  facility under a nine-year  sublease,
which expired on April 30, 1997. Due to the continuing  expansion of operations,
(See "Selling,  General and  Administrative"  above) the Company  decided not to
renew the  sublease  and  incorporated  such space into its  existing  corporate
facility.  Sublease  rental income earned during the nine months ended September
30, 1997 approximated $13,000.

NET LOSS

Net loss for the nine months ended September 30, 1998 was $2,105,604  ($0.26 per
share) as  compared to a net loss of  $1,484,412  ($0.19 per share) for the nine
months ended September 30, 1997. The increase in net loss,  principally resulted
from 1) decrease in "capital  sales"  type  revenue  resulting  from the Company
moving to a  subscription-based  revenue  model which  presently is in its early
stage  of  growth,  and 2)  increase  in  selling,  general  and  administrative
expenses.  See  "Revenues",  "Cost of  Recurring  Contracts  and Sales and Gross
Profit" and "Selling, General and Administrative" above.


LIQUIDITY AND CAPITAL RESOURCES

       The Company's  primary  source of liquidity  has been equity  capital and
proceeds from lines of credit. Since the commencement of operations, the Company
has raised approximately $9.8 million of working capital through various private
placements of its securities. During March 1997, the Company completed a private
placement of 800,000  shares of Common Stock at a price of $4.50 per share,  for
an aggregate  value of  $3,600,000.  Costs related to this offering  amounted to
approximately  $85,000 resulting in net proceeds to the Company of approximately
$3,515,000.  At September 30, 1998,  cash balances  decreased to $1,402,720 from
$2,141,307 at December 31, 1997.

       The Company's  current  assets at September 30, 1998 exceeded its current
liabilities by approximately $3.0 million. The Company at September 30, 1998 had
long-term debt totaling $1.5 million,  which  represents draw downs on a line of
credit that was obtained in July 1998. See  discussion  below.  In addition,  at
September  30,  1998,  the  Company  had no  material  commitments  for  capital
expenditures or inventory purchases.

       On July 13, 1998,  the Company  entered into a three year $3 million line
of credit agreement (the "Agreement") with a financial institution with advances
on such  agreement  available  to the  Company  during the first 18 months.  The
Agreement  is  primarily  intended  to finance  existing  and  future  equipment
expenditures.  The  Agreement  bears  interest at either LIBOR plus 1.25% or the
Bank's Prime Rate and is  personally  secured by a Company  shareholder  and the
Company's president.  The rate used is at management's  discretion.  The Company
drew down an aggregate of $1,500,000 under the agreement in the third quarter of
1998 ($1 million at the nine month


                                       15
<PAGE>

LIBOR  rate plus  1.25%  (7%) and  $500,000  at the 30 day LIBOR rate plus 1.25%
(6.78%)). The Agreement requires monthly payments of interest only until January
30, 2000, at which time monthly ratable principal and interest payments are made
until the Agreement matures.  Principal drawdowns under the Agreement can not be
prepaid  in the  first  eighteen  months.  In  consideration  for  securing  the
Agreement,  the said  shareholder  and president will receive 150,000 and 25,000
warrants  respectively,  to purchase  the  Company's  common stock at $6.375 per
share, which was the market value of the Company's common stock on the date such
warrants were issued.

       In association with obtaining the $3 million line of credit facility, the
Company  terminated its previous $500,000 line of credit agreement (revised from
$1 million  line of credit  agreement  in June 1998) and repaid all  outstanding
term loans.

       The Company  believes  that with its  available  capital,  including  the
proceeds  from the  line of  credit  facility,  it will be able to fund its cash
needs through the end of 1998.  The Company  intends to  internally  finance its
continuing  research and  development  activities.  The Company's line of credit
facility is primarily  utilized to finance equipment  purchases.  The Company is
considering  numerous  alternatives to finance its anticipated  sales growth and
growing infrastructure.  The Company's financial requirements and its ability to
meet them  thereafter will depend largely on its future  financial  performance.
However,  in the event the  Company's  operations  do not  generate  cash to the
extent currently anticipated by management of the Company and grows more rapidly
than anticipated, it is possible that the Company could require additional funds
beyond 1998. At this time, the Company does not know what sources, if any, would
be available to it for such funds, if required.

       In addition,  at September 30, 1998, the Company has warrants outstanding
for the purchase of 220,837 shares of its Common Stock. Assuming the exercise of
all such outstanding warrants,  the Company would receive approximately $800,000
in gross proceeds.

WORKING CAPITAL

       At September  30, 1998 and  December  31,  1997,  the Company had working
capital of approximately $2,952,000 and $3,803,000,  respectively. The Company's
present capital  resources  include its available  borrowing  capacity under its
bank credit  facility.  Through  September  30, 1998,  264,000 stock options and
warrants to purchase  common  stock were  exercised  with the Company  receiving
proceeds of approximately $890,000.

CASH USED IN OPERATING ACTIVITIES

       During  the  nine-months  ended  September  30,  1998,  net cash  used in
operations was  approximately  $1,082,000 as compared to cash used in operations
for the  nine-month  ended  September 30, 1997 of  approximately  $769,000.  The
decline is primarily  attributable to the continued  investment in the Company's
infrastructure as previously discussed.


                                       16
<PAGE>
CASH USED IN INVESTING ACTIVITIES

       During the nine months ended  September 30, 1998 and 1997,  net cash used
in investing activities was approximately $1,954,000 and $795,000, respectively,
and principally  represents payments for the purchases of equipment and payments
related to product enhancement costs for the Company's product portfolio.

PROCEEDS FROM FINANCING ACTIVITIES

       During the nine months ended  September 30, 1998 and 1997,  proceeds from
financing activities were approximately $2,297,000 and $3,030,000, respectively.
The decrease is primarily  attributable to there being no equity offering during
the nine months ended  September  30, 1998 as there was in the nine months ended
September 30, 1997.

YEAR 2000 COMPLIANCE

       The Company  expects to  implement  the systems and  programming  changes
necessary  to address  Year 2000  issues and does not  believe  the cost of such
actions will have a material  effect on the  Company's  results of operations or
financial  condition.  However,  there is no  guarantee  that the  Company,  its
suppliers or other third  parties will be able to make all of the  modifications
necessary  to  address  Year 2000  issues on a timely  basis.  This could have a
material  adverse  effect on the  Company's  business,  financial  condition and
results of  operations.  The Company  views all of its  applications  as mission
critical.  The Company recently  converted its previous capital sales model to a
subscription  sales model.  The newly  implemented  data center is substantially
compliant,  with all date  fields  expanded  to four  digits.  The Company is in
process of setting up a redundant environment and will test substantially all of
its business  transactions.  The testing of these applications is expected to be
completed during 1999.

       The Company  anticipates the possibility  that not all of its vendors and
other third  parties will have taken the necessary  steps to adequately  address
their  respective  Year 2000 issues on a timely basis.  In order to minimize the
impact on the Company,  a project team will be formed to monitor the  activities
of third  parties.  The Company  intends to continue  monitoring the progress of
others in order to determine  whether adequate  services will be provided to run
the Company's operations in the Year 2000.


SEASONALITY

       The Company believes that its operations are not  significantly  effected
by seasonality.

NEW ACCOUNTING PRONOUNCEMENTS

       In October 1997, the American  Institute of Certified Public  Accountants
issued  Statement  of  Position  97-2,  "Software  Revenue  Recognition,"  which
supercedes  SOP-91-1 and  clarifies  the  existing  guidance  regarding  revenue
recognition of certain computer software products. The

                                       17
<PAGE>

Company  adopted  SOP 97-2 in the first  quarter  of 1998 and the  effect is not
material to the Company's operations or financial position taken as a whole.

       In September 1997, the Financial  Accounting  Standards board issued FASB
Statement No. 131,  "Disclosures  about  Segments of an  Enterprise  and Related
Information." Statement 131 requires that segment data be disclosed based on how
management makes decisions about allocating  resources to segments and measuring
their  performance.  While  the  Company  is  studying  the  application  of the
disclosure  provisions,  it does not expect this statement to materially  affect
its financial position or results of operations. This Statement is effective for
the year ended December 31, 1998.


PART II

                                OTHER INFORMATION


Item 1.   LEGAL PROCEEDINGS

     Not applicable


Item 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS.

       Not applicable


Item 3.   DEFAULTS UPON SENIOR SECURITIES

     Not applicable


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

Not applicable


Item 5.  OTHER INFORMATION

 Not applicable

Item 6.  EXHIBITS AND REPORTS ON FORM 8-K.

(a)  EXHIBITS

     27  Financial  Data  Schedule


                                       18
<PAGE>
(b)     REPORTS ON FORM 8-K

       On August 7, 1998 the Company filed a current report on Form 8-K relative
to  obtaining a $3 million  line of credit  facility,  terminating  its $500,000
previous line of credit agreement and repaying its three term loans.


                                   SIGNATURES

      Pursuant to the  requirements of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                               Trinitech Systems, Inc.
                                                     (Registrant)



                                               By: /s/ Peter Kilbinger Hansen
                                                   -----------------------------
                                                   Peter Kilbinger Hansen
                                                   Chairman of the Board
                                                     and President
                                                   (Chief Executive Officer)




                                               By: /s/ Kevin C. Cassidy
                                                   -----------------------------
                                                   Kevin C. Cassidy
                                                   Chief Financial Officer and
                                                   Secretary
                                                   (Principal Financial and
                                                   Accounting Officer)